Insider: Microsoft canceled its own handheld console due to AMD pressure
The series of insights about changes in Xbox’s global strategy continues. Just a few hours ago, Microsoft denied the rumors about the cancellation of its next-generation home console, and now there is information about the refusal of another project.
What is known
The authoritative insider KeplerL2, who specializes in hardware news, confirmed that Microsoft canceled the development of its own handheld console, which was supposed to be released under the Xbox brand to compete with Steam Deck.
The informant suggests that the company came to this decision due to pressure from its main technology partner - AMD. Allegedly, the company was only willing to open a new production line for chips if Microsoft guaranteed the sale of at least 10 million devices; otherwise, AMD would receive large compensation.
Screenshot of the KeplerL2 message
It is not hard to guess why such a deal did not materialize. Although Steam Deck, Lenovo Legion, and other similar consoles are popular, none of them has even come close to such sales figures, and it is unlikely that this will happen in the foreseeable future.
The cancellation occurred at an early stage of development, so Microsoft probably did not incur heavy financial losses.
Recall that the first to report the freeze of the portable Xbox back in May 2025 was insider and journalist from Windows Central Jez Corden.
Source: NeoGaf